Due to impact including a hike in Stamp Duty and the impending changes to mortgage interest tax relief
There will be fewer ‘dinner party’ landlords following changes to the sector, which include a hike in Stamp Duty and the impending changes to mortgage interest tax relief.
That was the view of Adrian Moloney of One Savings Bank, speaking at this week’s Financial Services Expo exhibition, as part of an industry panel debate covering a wide range of issues.
When asked about the changing nature of buy-to-let and the landlords that are active within the sector, Moloney said: “We are seeing a move towards a more professional sector and we’re going to see less of the ‘dinner party’ landlord.
“This is very much an era of professionalism and I don’t think that’s necessarily a bad thing for the private rental sector.”
Gary Salter of Nationwide Building Society agreed that the changes would have implications for individual landlords.
“We will see a change,” he said. “This is the direction of travel we are going in – we moved to a 145% rental calculation earlier this year. Lenders will need to be much more prudent.”
Moloney also wanted changes to mortgage interest tax relief – to be introduced from April next year – to be dropped.
“My hope is that the Chancellor will change the tax rules for buy-to-let landlords in the Autumn Statement, but that’s probably not going to happen,” he said.
When also asked what action they would like to see Philip Hammond take in his first Autumn Statement in November, John Coffield of Paradigm Mortgage Services suggested changes to Stamp Duty Land Tax, particularly in London and the south-east, in order to help stimulate the market.
He argued that estate agents are not seeing enough properties come to market because people are put off by the costs of moving.